Fifty shades of innovation – from open toward user, and open collaborative forms of innovation – an overview

Starting from the Schumpeterian producer-driven understanding of innovation, followed by user-generated solutions and understanding of collaborative forms of co-creation, scholars investigated the drivers and the nature of interactions underpinning success in various ways. Innovation literature has gone a long way, where open innovation has attracted researchers to investigate problems like compatibilities of external resources, networks of innovation, or open source collaboration. Openness itself has gained various shades in the different strands of literature. In this paper the author provides with an overview and a draft evaluation of the different models of open innovation, illustrated with some empirical findings from various fields drawn from the literature. She points to the relevance of transaction costs affecting viable forms of (open) innovation strategies of firms, and the importance to define the locus of innovation for further analyses of different firm and interaction level formations.

Genetic algorithms and investment strategies: A global perspective

The profitability of momentum portfolios in the equity markets is derived from the continuation of stock returns over medium time horizons. The empirical evidence of momentum, however, is significantly different across markets around the world. The purpose of this dissertation is to: (1) help global investors determine the optimal selection and holding periods for momentum portfolios, (2) evaluate the profitability of the optimized momentum portfolios in different time periods and market states, (3) assess the investment strategy profits after considering transaction costs, and (4) interpret momentum returns within the framework of prior studies on investors’ behavior. Improving on the traditional practice of selecting arbitrary selection and holding periods, a genetic algorithm (GA) is employed. The GA performs a thorough and structured search to capture the return continuations and reversals patterns of momentum portfolios. Three portfolio formation methods are used: price momentum, earnings momentum, and earnings and price momentum and a non-linear optimization procedure (GA). The focus is on common equity of the U.S. and a select number of countries, including Australia, France, Germany, Japan, the Netherlands, Sweden, Switzerland and the United Kingdom. The findings suggest that the evolutionary algorithm increases the annualized profits of the U.S. momentum portfolios. However, the difference in mean returns is statistically significant only in certain cases. In addition, after considering transaction costs, both price and earnings and price momentum portfolios do not appear to generate abnormal returns. Positive risk-adjusted returns net of trading costs are documented solely during “up” markets for a portfolio long in prior winners only. The results on the international momentum effects indicate that the GA improves the momentum returns by 2 to 5% on an annual basis. In addition, the relation between momentum returns and exchange rate appreciation/depreciation is examined. The currency appreciation does not appear to influence significantly momentum profits. Further, the influence of the market state on momentum returns is not uniform across the countries considered. The implications of the above findings are discussed with a focus on the practical aspects of momentum investing, both in the U.S. and globally.

Genetic Algorithms and Investment Strategies: A Global Perspective

The profitability of momentum portfolios in the equity markets is derived from the continuation of stock returns over medium time horizons. The empirical evidence of momentum, however, is significantly different across markets around the world. The purpose of this dissertation is to: 1) help global investors determine the optimal selection and holding periods for momentum portfolios, 2) evaluate the profitability of the optimized momentum portfolios in different time periods and market states, 3) assess the investment strategy profits after considering transaction costs, and 4) interpret momentum returns within the framework of prior studies on investors’ behavior. Improving on the traditional practice of selecting arbitrary selection and holding periods, a genetic algorithm (GA) is employed. The GA performs a thorough and structured search to capture the return continuations and reversals patterns of momentum portfolios. Three portfolio formation methods are used: price momentum, earnings momentum, and earnings and price momentum and a non-linear optimization procedure (GA). The focus is on common equity of the U.S. and a select number of countries, including Australia, France, Germany, Japan, the Netherlands, Sweden, Switzerland and the United Kingdom. The findings suggest that the evolutionary algorithm increases the annualized profits of the U.S. momentum portfolios. However, the difference in mean returns is statistically significant only in certain cases. In addition, after considering transaction costs, both price and earnings and price momentum portfolios do not appear to generate abnormal returns. Positive risk-adjusted returns net of trading costs are documented solely during “up” markets for a portfolio long in prior winners only. The results on the international momentum effects indicate that the GA improves the momentum returns by 2 to 5% on an annual basis. In addition, the relation between momentum returns and exchange rate appreciation/depreciation is examined. The currency appreciation does not appear to influence significantly momentum profits. Further, the influence of the market state on momentum returns is not uniform across the countries considered. The implications of the above findings are discussed with a focus on the practical aspects of momentum investing, both in the U.S. and globally.

Avaliação de compatibilidade entre pasta de cimento e fluido de perfuração não-aquoso utilizados em poços petrolíferos

Compatibility testing between a drilling fluid and a cement slurry is one of the steps before an operation of cementing oil wells. This test allows us to evaluate the main effects that contamination of these two fluids may cause the technological properties of a cement paste. The interactions between cement paste and drilling fluid, because its different chemical compositions, may affect the cement hydration reactions, damaging the cementing operation. Thus, we carried out the study of the compatibility of non-aqueous drilling fluid and a cement slurry additives. The preparation procedures of the non-aqueous drilling fluid, the cement paste and completion of compatibility testing were performed as set out by the oil industry standards. In the compatibility test is evaluated rheological properties, thickening time, stability and compressive strength of cement pastes. We also conducted analyzes of scanning electron microscopy and X-ray diffraction of the mixture obtained by the compatibility test to determine the microstructural changes in cement pastes. The compatibility test showed no visual changes in the properties of the cement paste, as phase separation. However, after the addition of nonaqueous drilling fluid to cement slurry there was an increased amount of plastic viscosity, the yield point and gel strength. Among the major causative factors can include: chemical reaction of the components present in the non-aqueous drilling fluid as the primary emulsifier, wetting agent and paraffin oil, with the chemical constituents of the cement. There was a reduction in the compressive strength of the cement paste after mixing with this drilling fluid. Thickening test showed that the oil wetting agent and high salinity of the non-aqueous fluid have accelerating action of the handle of the cement paste time. The stability of the cement paste is impaired to the extent that there is increased contamination of the cement slurry with the nonaqueous fluid. The X-ray diffraction identified the formation of portlandite and calcium silicate in contaminated samples. The scanning electron microscopy confirmed the development of the identified structures in the X-ray diffraction and also found the presence of wells in the cured cement paste. The latter, formed by the emulsion stability of the drilling fluid in the cement paste, corroborate the reduction of mechanical strength. The oil wetting agent component of the non-aqueous drilling fluid, the modified cement hydration processes, mainly affecting the setting time.

Os limites constitucionais ao exercício de direito de patente e seus reflexos na indústria do petróleo, gás natural e biocombustíveis

This dissertation deals with the constitutional limits on the exercise of patent rights and its effects on the oil, natural gas and biofuels. Held with the support of ANP / PETROBRAS, It seeks to show how the law will limit the exercise of industrial property, based on a reinterpretation of private law by the constitutional development perspective . Today it is a fact that Petrobras, a Brazilian joint venture, has the latest technology in various sectors of the oil industry, and is one of the highest investments in developing new technologies. The overall objective of this thesis is to establish the relationship between the public interest of the Petroleum Industry, Natural Gas and Biofuels and constitutional limits to the free exercise of patent rights, then confirm or refute our hypothesis that Article 71 on Industrial Property Law is contrary to the existing objectives in Article 3 of the Constitution of the Federative Republic of Brazil. The research aims to examine the relevant aspects of the legal nature attributed to IPGN constitutionally confronting the constitutional limits on the free exercise of patent rights, with the purpose to outline the state of the performance limits in the regulation of the economy, in particular the application of feasibility limitations on the right of property in favor of national interest on the strategic energy industry. The aim is to confront the fundamental rights to property and economic development, against the public interest, limiting these first. As to the objectives, the research will be theoretical and descriptive and harvest of industrial property, respect the possible impact of regulatory standards and limiting the right of ownership in the oil industry. To establish how the state will mitigate the intellectual property right, we discuss, at first, a definition of public interest from the general theory of state and sovereign character in order to establish a new concept of national interest and popular interest, which will in turn the definition of our concept of public interest. In the second phase, will be addressed the issue of industrial property rights and how to will be free exercise thereof, in the constitutional sphere, infra, and demonstrating the use of industrial property rights with examples of market and IPGN . After situating the industrial property rights in the constitution and national legislation, establish their relationship with the national and regional development, will be addressed in this chapter in particular the patent law, as most usual form of intellectual property protection in IPGN. Used a study highlighting the number of patents in the area of the analyzed industry, demonstrating with hard data the importance of a sector for industrial development. The relationship between the social function of intellectual property and the constitutional objective of development was characterized to demonstrate the strategic nature of oil to Brazil in the national and international scene, and put into question the hypothesis of the research which provides that even with large investments the lack of legal certainty in the sector turns out not to have a considerable volume of investment as it could.

Influência da estratigrafia mecânica no desenvolvimento de falhas distensionais em bacias do tipo Rifte: contribuição da modelagem física

In the last decades, analogue modelling has been used in geology to improve the knowledge of how geological structures are nucleated, how they grow and what are the main important points in such processes. The use of this tool in the oil industry, to help seismic interpretations and mainly to search for structural traps contributed to disseminate the use of this tool in the literature. Nowadays, physical modelling has a large field of applications, since landslide to granite emplacement along shear zones. In this work, we deal with physical modelling to study the influence of mechanical stratifications in the nucleation and development of faults and fractures in a context of orthogonal and conjugated oblique basins. To simulate a mechanical stratigraphy we used different materials, with distinct physical proprieties, such as gypsum powder, glass beads, dry clay and quartz sand. Some experiments were run along with a PIV (Particle Image Velocimetry), an instrument that shows the movement of the particles to each deformation moment. Two series of experiments were studied: i) Series MO: We tested the development of normal faults in a context of an orthogonal (to the extension direction) basin. Experiments were run taking into account the change of materials and strata thickness. Some experiments were done with sintectonic sedimentation. We registered differences in the nucleation and growth of faults in layers with different rheological behavior. The gypsum powder layer behaves in a more competent mode, which generates a great number of high angle fractures. These fractures evolve to faults that exhibit a higher dip than when they cross less competent layers, like the one of quartz sand. This competent layer exhibits faulted blocks arranged in a typical domino-style. Cataclastic breccias developed along the faults affecting the competent layers and showed different evolutional history, depending on the deforming stratigraphic sequence; ii) Series MOS2: Normal faults were analyzed in conjugated sub-basins (oblique to the extension direction) developed in a sequence with and without rheological contrast. In experiments with rheological contrast, two important grabens developed along the faulted margins differing from the subbasins with mechanical stratigraphy. Both experiments developed oblique fault systems and, in the area of sub-basins intersection, faults traces became very curved.

Proposta de válvula bypass para controle de velocidade de PIGs instrumentados: protótipo e simulação em bancada

In the Oil industry, oil and gas pipelines are commonly utilized to perform the transportation of production fluids to longer distances. The maintenance of the pipelines passes through the analysis of several tools, in which the most currently used are the pipelines inspection cells, popularly knowing as PIG. Among the variants existing in the market, the instrumented PIG has a significant relevance; acknowledging that through the numerous sensors existing in the equipment, it can detect faults or potential failure along the inspected line. Despite its versatility, the instrumented PIG suffers from speed variations, impairing the reading of sensors embedded in it. Considering that PIG moves depending on the speed of the production fluid, a way to control his speed is to control the flow of the fluid through the pressure control, reducing the flow rate of the produced flow, resulting in reduction of overall production the fluid in the ducts own or with the use of a restrictive element (valve) installed on it. The characteristic of the flow rate/pressure drop from restrictive elements of the orifice plate is deducted usually from the ideal energy equation (Bernoulli’s equation) and later, the losses are corrected normally through experimental tests. Thus, with the objective of controlling the fluids flow passing through the PIG, a valve shutter actuated by solenoid has been developed. This configuration allows an ease control and stabilization of the flow adjustment, with a consequent response in the pressure drops between upstream and downstream of the restriction. It was assembled a test bench for better definition of flow coefficients; composed by a duct with intern diameter of four inches, one set of shutters arranged in a plate and pressure gauges for checking the pressure drop in the test. The line was pressurized and based on the pressure drop it was possible to draw a curve able to characterize the flow coefficient of the control valve prototype and simulate in mockup the functioning, resulting in PIG speed reduction of approximately 68%.

Estudo da absorção das espécies pesadas do gás natural em octanol: efeitos da temperatura e vazão

In the oil industry, natural gas is a vital component of the world energy supply and an important source of hydrocarbons. It is one of the cleanest, safest and most relevant of all energy sources, and helps to meet the world's growing demand for clean energy in the future. With the growing share of natural gas in the Brazil energy matrix, the main purpose of its use has been the supply of electricity by thermal power generation. In the current production process, as in a Natural Gas Processing Unit (NGPU), natural gas undergoes various separation units aimed at producing liquefied natural gas and fuel gas. The latter should be specified to meet the thermal machines specifications. In the case of remote wells, the process of absorption of heavy components aims the match of fuel gas application and thereby is an alternative to increase the energy matrix. Currently, due to the high demand for this raw gas, research and development techniques aimed at adjusting natural gas are studied. Conventional methods employed today, such as physical absorption, show good results. The objective of this dissertation is to evaluate the removal of heavy components of natural gas by absorption. In this research it was used as the absorbent octyl alcohol (1-octanol). The influence of temperature (5 and 40 °C) and flowrate (25 and 50 ml/min) on the absorption process was studied. Absorption capacity expressed by the amount absorbed and kinetic parameters, expressed by the mass transfer coefficient, were evaluated. As expected from the literature, it was observed that the absorption of heavy hydrocarbon fraction is favored by lowering the temperature. Moreover, both temperature and flowrate favors mass transfer (kinetic effect). The absorption kinetics for removal of heavy components was monitored by chromatographic analysis and the experimental results demonstrated a high percentage of recovery of heavy components. Furthermore, it was observed that the use of octyl alcohol as absorbent was feasible for the requested separation process.

Estudo da absorção das espécies pesadas do gás natural em octanol: efeitos da temperatura e vazão

In the oil industry, natural gas is a vital component of the world energy supply and an important source of hydrocarbons. It is one of the cleanest, safest and most relevant of all energy sources, and helps to meet the world's growing demand for clean energy in the future. With the growing share of natural gas in the Brazil energy matrix, the main purpose of its use has been the supply of electricity by thermal power generation. In the current production process, as in a Natural Gas Processing Unit (NGPU), natural gas undergoes various separation units aimed at producing liquefied natural gas and fuel gas. The latter should be specified to meet the thermal machines specifications. In the case of remote wells, the process of absorption of heavy components aims the match of fuel gas application and thereby is an alternative to increase the energy matrix. Currently, due to the high demand for this raw gas, research and development techniques aimed at adjusting natural gas are studied. Conventional methods employed today, such as physical absorption, show good results. The objective of this dissertation is to evaluate the removal of heavy components of natural gas by absorption. In this research it was used as the absorbent octyl alcohol (1-octanol). The influence of temperature (5 and 40 °C) and flowrate (25 and 50 ml/min) on the absorption process was studied. Absorption capacity expressed by the amount absorbed and kinetic parameters, expressed by the mass transfer coefficient, were evaluated. As expected from the literature, it was observed that the absorption of heavy hydrocarbon fraction is favored by lowering the temperature. Moreover, both temperature and flowrate favors mass transfer (kinetic effect). The absorption kinetics for removal of heavy components was monitored by chromatographic analysis and the experimental results demonstrated a high percentage of recovery of heavy components. Furthermore, it was observed that the use of octyl alcohol as absorbent was feasible for the requested separation process.

Análise comparativa de diferentes configurações de poços no processo de combustão in-situ

With an increasing number of mature fields, heavy oil recovery has performed one of the great challenges of the oil industry. The Brazilian Northeast, for example, has numerous heavy oil reservoirs are explored with the use of thermal methods. Among the types of methods used for heavy oil, there is the method of in-situ combustion, a technique in which heat is produced within the container, unlike the injection of heated fluid when the heat is generated at the surface and transported to the reservoir. In this type of process, it is common to use vertical wells as injectors and producers. However, methods which use horizontal wells like oil producers are increasingly studied because of greater contact area between the formation and combustion front. Thus, the main objective of this work was to study the different configurations of wells (CIS THAITM and CAGD) in the process of in-situ combustion in oil recovery using a semi-synthetic tank with Brazilian Northeast features. The method "toe-to-heel air injection" (THAITM) is a process of enhanced oil recovery, which is the integration of in-situ combustion with technological advances in drilling horizontal wells. This method uses horizontal wells such as oil producers, keeping vertical injection wells for injecting air. The oil drain process by differential gravitational assisted with combustion (CAGD) is an integrated, in this configuration the horizontal injector well is drilled at the top formation with a horizontal production well in the lower section. The simulations were performed in a commercial program of thermal processes, called "STARS" (Steam, Thermal, and Advanced Processes Reservoir Simulator), the company CMG (Computer Modelling Group). An analysis of the air flow injection was performed and it was found that each method had a maximum injection to the base model, a show that through this air injection limit was reduced cumulative production of oil. Analyses of operating parameters were used: injection flow, configuration and completion of wells. In the sensitivity analysis we found that the air injection flow showed greater influence on THAI method, since the CIS method the completion of the wells was the most influential parameter and CAGD configuration wells showed the greatest influence in the recovered fraction. The economic results have shown that the best case obtained in CAGD method because, despite having higher initial cost showed the best financial return compared to the best cases the CIS and THAI.

Análise comparativa de diferentes configurações de poços no processo de combustão in-situ

With an increasing number of mature fields, heavy oil recovery has performed one of the great challenges of the oil industry. The Brazilian Northeast, for example, has numerous heavy oil reservoirs are explored with the use of thermal methods. Among the types of methods used for heavy oil, there is the method of in-situ combustion, a technique in which heat is produced within the container, unlike the injection of heated fluid when the heat is generated at the surface and transported to the reservoir. In this type of process, it is common to use vertical wells as injectors and producers. However, methods which use horizontal wells like oil producers are increasingly studied because of greater contact area between the formation and combustion front. Thus, the main objective of this work was to study the different configurations of wells (CIS THAITM and CAGD) in the process of in-situ combustion in oil recovery using a semi-synthetic tank with Brazilian Northeast features. The method "toe-to-heel air injection" (THAITM) is a process of enhanced oil recovery, which is the integration of in-situ combustion with technological advances in drilling horizontal wells. This method uses horizontal wells such as oil producers, keeping vertical injection wells for injecting air. The oil drain process by differential gravitational assisted with combustion (CAGD) is an integrated, in this configuration the horizontal injector well is drilled at the top formation with a horizontal production well in the lower section. The simulations were performed in a commercial program of thermal processes, called "STARS" (Steam, Thermal, and Advanced Processes Reservoir Simulator), the company CMG (Computer Modelling Group). An analysis of the air flow injection was performed and it was found that each method had a maximum injection to the base model, a show that through this air injection limit was reduced cumulative production of oil. Analyses of operating parameters were used: injection flow, configuration and completion of wells. In the sensitivity analysis we found that the air injection flow showed greater influence on THAI method, since the CIS method the completion of the wells was the most influential parameter and CAGD configuration wells showed the greatest influence in the recovered fraction. The economic results have shown that the best case obtained in CAGD method because, despite having higher initial cost showed the best financial return compared to the best cases the CIS and THAI.

Essays in Industrial Organization

This dissertation extends the empirical industrial organization literature with two essays on strategic decisions of firms in imperfectly competitive markets and one essay on how inertia in consumer choice can result in significant welfare losses. Using data from the airline industry I study a well-known puzzle in the literature whereby incumbent firms decrease fares when Southwest Airlines emerges as a potential entrant, but is not (yet) competing directly. In the first essay I describe this so-called Southwest Effect and use reduced-form analysis to offer possible explanations for why firms may choose to forgo profits today rather than wait until Southwest operates the route. The analysis suggests that incumbent firms are attempting to signal to Southwest that entry is unprofitable so as to deter its entry. The second essay develops this theme by extending a classic model from the IO literature, limit pricing, to a dynamic setting. Calibrations indicate the price cuts observed in the data can be captured by a dynamic limit pricing model. The third essay looks at another concentrated industry, mobile telecoms, and studies how inertia in choice (be it inattention or switching costs) can lead to consumers being on poorly matched cellphone plans and how a simple policy proposal can have a considerable effect on welfare.

Essays on the Dynamic Decisions of Homeowners and Retailers

Urban problems have several features that make them inherently dynamic. Large transaction costs all but guarantee that homeowners will do their best to consider how a neighborhood might change before buying a house. Similarly, stores face large sunk costs when opening, and want to be sure that their investment will pay off in the long run. In line with those concerns, different areas of Economics have made recent advances in modeling those questions within a dynamic framework. This dissertation contributes to those efforts.

Chapter 2 discusses how to model an agent’s location decision when the agent must learn about an exogenous amenity that may be changing over time. The model is applied to estimating the marginal willingness to pay to avoid crime, in which agents are learning about the crime rate in a neighborhood, and the crime rate can change in predictable (Markovian) ways.

Chapters 3 and 4 concentrate on location decision problems when there are externalities between decision makers. Chapter 3 focuses on the decision of business owners to open a store, when its demand is a function of other nearby stores, either through competition, or through spillovers on foot traffic. It uses a dynamic model in continuous time to model agents’ decisions. A particular challenge is isolating the contribution of spillovers from the contribution of other unobserved neighborhood attributes that could also lead to agglomeration. A key contribution of this chapter is showing how we can use information on storefront ownership to help separately identify spillovers.

Finally, chapter 4 focuses on a class of models in which families prefer to live

close to similar neighbors. This chapter provides the first simulation of such a model in which agents are forward looking, and shows that this leads to more segregation than it would have been observed with myopic agents, which is the standard in this literature. The chapter also discusses several extensions of the model that can be used to investigate relevant questions such as the arrival of a large contingent high skilled tech workers in San Francisco, the immigration of hispanic families to several southern American cities, large changes in local amenities, such as the construction of magnet schools or metro stations, and the flight of wealthy residents from cities in the Rust belt, such as Detroit.

Reform and Redesign: A Review of the Changing Role of the Public Purposes in R&D and Technology Institutes (Working Paper 17)

As the globalization of knowledge has taken hold over the past decade, and as governments around the world review their new roles in support of the production of knowledge, several factors have shaped the context in governments’ approach to public research. Arguably, none has been more affected by these pressures for reform than government scientific and technology laboratories or institutes. Often ignored in the re-shaping of national systems of innovation, these organizations play an important role in advancing national economic and social objectives. This paper, by reviewing examples of reforms underway in several countries, including Canada, France, Germany, the UK, Japan, USA and Latin America, will argue that government research and technology institutes — often historically surrogates for industrial research — are gradually re-defining their mandates to meet the new pressures of globalization as well as satisfying growing public demands for increased relevance and efficiency in responding to citizens’ and industry needs.

Cultural cooperation, institution building, and metropolitan governance in decentralizing Indonesia

The institutional turn in metropolitan governance has been influenced to a considerable degree by a rational choice approach, which views metropolitan governance as essentially created by local actors to reduce the transaction costs of inter-jurisdictional public-service provision. Another influential theoretical route follows a historical approach, which emphasizes the role of the state structure in producing formal institutions to enable governance at the regional level. Both approaches tend to be formalistic, simplistic and deterministic in nature, thus neglecting the dynamic interactions between the actors and their more informal, intangible, yet more basic, legitimate institutions, such as culture. This article examines the dynamic role of culture in metropolitan governance building in the context of decentralizing Indonesia. The analysis focuses on ‘best-practice’ experiences of metropolitan cooperation in greater Yogyakarta, where three neighbouring local governments known as Kartamantul have collaboratively performed cross-border infrastructure development to deal with the consequences of extended urbanization. We draw on sociological institutionalism to argue that building this metropolitan cooperation has its roots in the capacity of the actors to use and mobilize culture as a resource for collaborative action.